Puerto Rico officials expect the island’s economy will again contract in fiscal 2011, a reversal from earlier projections that gross domestic product would increase this year at a modest rate of 0.4%.

For fiscal 2012, GDP is projected to increase slightly, although only in a range from 0% to 1%, said Juan Carlos Batlle, president of the Government Development Bank for Puerto Rico. Fiscal 2012 begins July 1. The commonwealth has been in a recession since 2006.

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